The Love Company has provided the following information:
Income tax rate ..........30%
Selling price per unit.........$6.60
Variable cost per unit.........$5.28
Total fixed costs ...........$46,200.00
Required:
A) Compute the break-even point in units.
B) Compute the sales volume in units necessary to generate an after-tax net income of $10,000.
C) Compute the sales volume in units necessary to generate an after-tax net income of $20,000.